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Clarification required for IT Software Ltd

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  • 23-07-2015 2:03pm
    #1
    butterfly555
    Registered Users Posts: 5 ✭


    Hi all,

    I need some advice on my accounts for my software company

    1) Do I claim the Vat on revenue expenditure ie utilities on the bi-monthly VAT-3 form or do I just claim gross amount in accounts. I work from home so I have already apportioned the claimable amount of utilities.

    2) Do I claim the Vat on capital items on the same VAT-3 form or do I capitilise the gross amount for claiming allowances?
    Its a small transaction/ high yield company.

    My question is this. I bought some hardware for the business, and I am thinking of claiming them as revenue expenses rather then capital. Here's why
    a) max price of each item is 1.7k
    b)its a part time business, never going to be full time and wont be long time thing.I want to make the money and get out .Working 18 hrs a day is not sustainable!!
    c)Legislation specifically mentions computer software , not computer hardware.
    d) I spent a lot of money and I want to get it back asap , claiming as revenue seems like that easiest and quickest.

    If I claim as revenue expenses, do I claim VAT on VAT form and deduct net as expense or dont claim VAT on VAT-3 and just deduct the gross amount.

    I know there's a lot of debate around this area so any thoughts are appreciated.
    Many thanks.
    Tagged:


Comments

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    #2
    dbran
    Moderators, Business & Finance Moderators Posts: 2,094 Mod ✭✭✭✭dbran


    Good Lord!!!

    Go and see an accountant before you do yourself some real damage as you don't have a clue what you are doing.

    Best Regards


    Dbran


  • Options
    #3
    butterfly555
    Registered Users Posts: 5 ✭butterfly555


    All I wanted was so help, not some smart reply Dbran. Everything I read contradicted itself and there is no strict rules around this.

    Thanks for your help. Very helpful indeed.


  • Options
    #4
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    butterfly555 wrote: »
    All I wanted was so help, not some smart reply

    You obviously don't realise it but that was the smartest, most helpful response you could get.

    It is apparent from your opening post that you need professional advice from someone qualified to give it. Anyone that suggests otherwise is not somebody you should be taking advice from.


  • Options
    #5
    butterfly555
    Registered Users Posts: 5 ✭butterfly555


    I have an accountant. Having previous worked in the industry a long time ago I was questioning his work. That's why I needed Clarification as requested.
    My accountant is looking after a friends similar business and is treating the same expenses in a different manner.
    I didnt want to go into this on my post but there you go. I just wanted to get an opinion before I go looking for new one. That was all.


  • Options
    #6
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    butterfly555 wrote: »
    I have an accountant.

    ---//---

    I just wanted to get an opinion before I go looking for new one. That was all.

    It sounds like you've already made the sensible decision. Best of luck with it.


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